The Straits Times Index (STI) experienced a 4.5% rebound over five sessions ending 15 April, following a 12.7% decline in the preceding six sessions. This recovery reduced the month-to-date total return decline to 8.4%. Key contributors to the STI’s performance included SGX, YZJ Shipbuilding, ST Engineering, Singtel, and Seatrium, which were among the top eight stocks for net institutional buying during this period.
Institutions continued to net sell STI banks, resulting in a net outflow of $106.5 million (S$145.5 million). However, they were net buyers across the rest of the stock market, leading to a net inflow of $97.2 million (S$133 million). The telecommunications sector, in particular, saw the highest net institutional inflow, with Singtel, NetLink NBN Trust, and Starhub ranking among the 30 most net bought stocks.
Singtel’s stock reached $2.67 (S$3.65) in early trading on 16 April, marking its highest level since January 2017. This follows Singtel’s report in February of an 11% increase in underlying net profit after tax (NPAT), driven by strong performances from Optus and NCS, as well as higher contributions from India and Thailand. The company is approaching the one-year anniversary of its ST28 growth plan.
The telecommunications sector recorded a net institutional inflow of $96.8 million (S$132.5 million) over the past five sessions and $377.8 million (S$517.5 million) year-to-date. This highlights the sector’s strong appeal to institutional investors amidst the broader market fluctuations. As the STI continues to recover, the focus remains on how these trends will evolve in the coming months.
“`
